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Assume an organization's current service level on order fill is as follows Current order fill = 80% Number of orders per year = 5,000 Percent
Assume an organization's current service level on order fill is as follows Current order fill = 80% Number of orders per year = 5,000 Percent of unfilled orders back-ordered = 70% Percent of unfilled orders canceled 30% Back order costs per order 150 Lost pretax profit per cancelled order- $12,500 If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Calculate ROI O Yes, 115.7% O No,-115.7% O Yes, 86.46% O Can't be determined
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